Glossary
Line of credit
A line of credit is a limit a bank sets so you can borrow when needed, repay and borrow again, paying interest only on what you took.
What it means for a shop owner
It suits a business whose cash need changes with the seasons. Do not treat it as your own money since it is debt. Ask about fees for keeping the line open even if you do not use it.
A worked example
The limit is 10000. You draw 3000 for the buying season and repay it, paying interest on the 3000 only.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes